Warren To Snag CFPA Directorship?

Elizabeth Warren is a lock for CFPA director, a White House aide tells Slate.

Warren was the chief architect of the Consumer Financial Protection Agency and once quipped, “It is impossible to buy a toaster that has a one-in-five chance of bursting into flames and burning down your house. But it is possible to refinance an existing home with a mortgage that has the same one-in-five chance of putting the family out on the street.”

Fingers crossed.

Can She Manage? [Slate]

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  1. MaliBoo Radley says:

    One can only hope.

  2. TuxthePenguin says:

    “But it is possible to refinance an existing home with a mortgage that has the same one-in-five chance of putting the family out on the street.”

    I’m not entirely sure that’s true with conventional mortgages and the average homeowner. I would love to see the foreclosure rate for those in 15/30-year fixed rate mortgages, and then how many of those foreclosures are due to loss of employment, etc. I bet its a WHOLE lot lower than the overall average because of its fixed nature (the only thing that would change would be escrow amounts, by its very nature).

    What I think causes a 1/5 chance of blowing up is when you start getting into ARM’s and exotic loans. In those cases, I put the blame about 50/50 onto both the lender and the borrower. The lender, for its own safety*, should make darn sure that the borrower understands the kind of loan they are getting. And the borrow should darn well understand the arrangements before he signs on the dotted line. But greed and irrational exuberance got in the way on both sides…

    It would be like shopping for a toaster and instead of getting the standard, you opt for the “flame throwing” option and then get upset when it burns you…

    • TuxthePenguin says:

      Ah, second thought – I would also exclude strategic defaulters from my first question (default rate on 15/30-years). In her analogy, these would be people who stuff paper into the toaster to intentionally make it burn…

    • TuxthePenguin says:

      Another thought on my own comment…

      Why doesn’t the government ban anything but fixed-rate mortgages for individuals? That way you will always know what your monthly payment will be for the duration of your loan.

      • frank64 says:

        There are 5/1 ARMs that can save you real money(I don’t know what they are now). It was the sub prime 2/28’s which were the problem. Those rates went from 6% to 9 or 10%.

      • Gaz says:

        Because ARM’s can be good loans for people in certain situations (someone who plans to only be in the house 3-5 years, people who intend to payoff the loan quickly, etc). The so called exotic loans existed because in certain equally exotic situations they fit a borrowers needs well. The problem cropped up when unethical lenders made loans to unethical borrowers. We don’t want the government telling us what sort of home mortgage we can buy. It may work out great, or we may end up with a complicated mess, in either case we’ll have lost most of the direct control that empowers consumers to get a good deal.

  3. psm321 says:

    Except that they’re doing a temporary appointment now so that they can wait until later to do a permanent one at which point they’ll say “sorry, too many Republicans to get her confirmed”, instead of permanently appointing her now when there is a risk that she might actually get confirmed to the chagrin of Geitner, et al

  4. Loias supports harsher punishments against corporations says:

    First CFPA Director, next President of the United States.

    Go Warren!

  5. Tim says:

    This is the most accurate coverage I’ve found about Warren and the CFPA: http://wonkette.com/421145/media-cannot-stop-reporting-that-elizabeth-warren

  6. fsnuffer says:

    The Nanny States of America. I am 46 years old and not once have I needed the Government to “protect” me from myself.

    • PunditGuy says:

      Shenanigans. Ever drink tap water? Ever breathe? Ever work in a safe environment? Ever take a prescription drug? Ever take an OTC one? Do you have an FDIC-insured checking account?

      There are dozens of protections that you enjoy every day, making it so you don’t have to protect you from yourself. The alternative would be for you or someone else to suffer some harm so that others know to avoid it in the future.

      • formergc says:

        None of those examples apply to his comment, as none constitute protection from his own decisions.

        • Loias supports harsher punishments against corporations says:

          Then perhaps you can enlighten us to what laws the writer was referring to. Because the CFPA actually protects us from unscrupulous businesses, not ourselves.

        • PunditGuy says:

          Oh yes they do. He doesn’t have to make a decision as to which water to drink that will be safe, because all regulated commercial and utility sources are. If there were no “nanny,” he’d have to figure out where the tap water is safe or which alternative source of water is safe. These rules specifically protect you from having to make decisions that could go very badly for you.

        • Mecharine says:

          Having a checking account is a conscious decision. Or are you saying a checking account is a right or an entitlement?

    • Loias supports harsher punishments against corporations says:

      I’m not sure how that comment connects to an agency designed to prevent bad business practices.

  7. kricka says:

    Looking forward to seeing this happen. It’s about time!!

  8. Big Mama Pain says:

    This is a really great article, read it yesterday. Obama really needs to grow a pair of balls and put her up for confirmation. I don’t think any politician would dare not confirm her with upcoming elections because whatever party you identify with, all of us can agree that she would be great for this job. If he appoints her without confirmation, she will only be in the seat for one year and then she would have to be confirmed anyway.

  9. 3rdUserName says:

    I’ve seen her in a few different documentaries lately, I like the way she thinks…